A combination of high-profile star films and small-scale sleeper hits is aiding an unexpected revival for cinema in small towns, with experts estimating overall theatrical earnings will improve by 15-20% this year as compared to 2025.
While the success of action franchise Dhurandhar is well known, studio executives and theatre owners are more buoyed by other surprise hits—devotional drama Hanuman Ansh made on a shoestring budget of ₹2 crore last reported earnings of over ₹124 crore. Other than that, Mirzapur-The Movie is seeing traction in markets like Uttar Pradesh, east Punjab and Bihar, having crossed ₹90 crore over the weekend.
Before that, Emraan Hashmi’s Awarapan 2 ( ₹145.78 crore), comedies such as Dhamaal 4 ( ₹163.79 crore) and Welcome to the Jungle ( ₹130.79 crore) along with Hollywood blockbuster Spider-Man: Brand New Day ( ₹498.98 crore), had signaled positive momentum for the year with the festive quarter still to go.
According to media consulting firm Ormax, Indian films grossed ₹13,395 crore in 2025, with Hindi cinema making ₹5,504 crore. While overall theatrical earnings are expected to rise this year, small-town markets themselves are clocking 7-10% higher business currently.
“There is a clear signal that when the right film comes along, there is always an audience for it. Many of these small towns were written off for two to three years after the pandemic but it is now clear that content resonates, people do turn up,” said Kamal Gianchandani, CEO of PVR Pictures Ltd and president of the Multiplex Association of India.
Other than content itself appealing to mass-market sensibilities, Gianchandani attributed the trend to the development of independent multiplexes in several smaller markets and constant upgrading of facilities including sound and projection.
Sleeper hits
Driven by strong audience appreciation and positive word of mouth, Hanuman Ansh continues to draw occupancy above 50% at PVR Inox, while its biggest fourth week and strongest Tuesday performance yet underline the depth of its growing audience connection.
“Films like Laalo–Krishna Sada Sahayate have shown us a similar journey, where audience advocacy can turn a modest opening into a sustained theatrical success. We continue to be amazed by these sleeper hits and how culturally rooted, emotionally resonant stories can find a much wider audience than anticipated,” Gautam Dutta, CEO–revenue and operations, PVR Inox Ltd, said in a statement.
According to Yusuf Shaikh, founder and chief executive officer of low-cost theatre chain Janta Cinema, makers have finally realized that given the abundance of entertainment options, the elite in big cities are not coming to cinemas as frequently or only turning up in the second or third week if word-of-mouth is great.
“The real movie goer is the youth and middle-class viewer and they are finally catering to that broad audience,” Shaikh added.
While some recent flops such as Alia Bhatt’s Alpha and Varun Dhawan’s Hai Jawani Toh Ishq Hona Hai still point to the disconnect with audiences, Shaikh said the growth in box office this year is likely to be driven by small towns, thanks to hits like Dhurandhar and Dhamaal 4.
Ashutosh Agarwal, owner of Star World Cinemas in Uttar Pradesh, agreed the year is turning out to be better than 2025 and a jump in box office for smaller markets too is likely. He is also pinning hopes on what is slated for the rest of the year.
“While things were a little slow in between thanks to the IPL, this year will definitely surpass the previous year’s collections and if everything falls in place, we should also see Shah Rukh Khan’s King by the end of December,” he added.